Saturday, 31 May 2014 00:00
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Says bilateral relations very “strong and solid”
Potential for oil, trade and agriculture sector
High demand for rubber, garments, spices and coconut
SL to reduce indirect shipments to the country
Sri Lanka has immense potential to increase exports to Iraq, but to make the most of this opportunity the nation should further reduce instances of indirect shipments to that country, a senior official of the Iraq Embassy to Sri Lanka said.
Iraq Ambassador Kahtan Taha Khalaf speaking to the Daily FT noted: “Bilateral relations between Iraq and Sri Lanka are very strong and solid. There are so many areas which we can work on and there certainly is a lot of potential, especially in the oil, trade and agriculture sector. There is high demand in Iraq for rubber, garments, spices, coconut and food and beverage items.”
However, although Sri Lanka is presented with the opportunity of increasing trade with that country, it is still faced with the challenge of avoiding indirect shipments to Iraq.
“At the moment there are a number of shipments from Sri Lanka but they do not reach us directly. This makes the product more expensive once it reaches Iraq so it is not economical. If Sri Lanka can make the shipments directly, the prices for local consumers (Iraqis) will be less and we will increase the frequency and quantity of imports,” he said.
Khalaf acknowledged that although the situation in this regard has improved within the last one year with the establishment of a joint committee between the two countries, there is room for further improvement.
He shared that earlier this month the Iraq Embassy had put forward a list of products to the Ministry of Industry and Commerce to circulate amongst potential companies which can export the required items.
Earlier this week Ambassador and Commercial Counsellor Dr. Ali Al-Kuhlee addressed a forum on ‘Bilateral Trade with Iraq’ organised by the National Chamber of Commerce, where local business were given the opportunity to discuss directly with the Embassy the current business trends, trade potential, opportunities for exports, imports and investments, and services available in Iraq for Sri Lankans.
At the forum it was stressed that while Iraq welcomes a variety of products from Sri Lanka, it does have a list of restricted items. Such items include fresh fish (live), all agricultural and industrial materials that go into the field of drugs, expired food and medical supplies, ammonium nitrate and compound fertilisers.
Trade value between the two countries that stood at $ 8.72 million in 2003 topped $ 89.99 million in 2013. Sri Lanka’s exported goods totalled $ 89.80 million to Iraq and imported goods worth $ 0.19 million in 2013.
